What is the Income Withholding for compensation other than regular pay?
Bonuses and commissions: These may be applied to the employee/obligor's support obligations in the pay period in which they are paid if the regular pay of the employee/obligor is not sufficient to meet their total support obligations for that period.
Compensation for sick leave, vacation, and workers compensation in lieu of regular pay: Each of these compensations is subject to income withholding for support the same as regular compensation.
Tips and gratuities: Employers are obligated to withhold child support from tips or gratuities received by employees only when the tips and gratuities are received by the employer and then distributed to employees. Employers are not obligated to withhold for child support from tips or gratuities received directly by employees.
Payments to independent contractors: The owner or operator is required to withhold the required amounts for support in accordance with the IWO from any payments to the independent contractor.
The amount to withhold is determined by using the worksheet
, except there may be no deductions from the gross payment for the federal and state taxes and retirement and disability contributions. Those items are generally not withheld from an independent contractor's compensation. However, if such items are actually withheld from an independent contractor's compensation, they may be deducted on the worksheet.
What is the Income Withholding for employed obligors who are paid by outside agencies or sources?
Professional Employment Organizations (PEO): Businesses and other organizations which receive IWO's and have their human resources functions, including compensating employees, performed by PEO's must immediately inform the court or child support office shown on the IWO of the situation.
Temporary staff services: Businesses and other organizations which receive IWO's for staff that are hired and compensated through outside staff services must immediately inform the court or child support office shown on the IWO of the situation.